The countdown begins. August 1st marks the official opening of the college application season for students looking to start school in Fall 2026. And while high school seniors are dreaming of their first year of independence, parents (and students) should be preparing for a deadline that’s just as critical: October 1st, when the FAFSA (Free Application for Federal Student Aid) opens.

These two dates are more than just calendar reminders. They are major financial turning points for parents getting ready to launch their children into the next endeavor. And at Fyooz Financial Planning, we’re here to remind you that financial preparation and readiness can be just as impactful as the college selection itself.

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The FAFSA Opens October 1st, But Don’t Wait to Get Your Financial House in Order

The FAFSA isn’t just a form, it’s the key that unlocks access to federal grants, scholarships, work-study programs, and student loans. But how much aid you receive can depend heavily on how prepared you are when it opens.

Here’s what you’ll need to do before October 1st:

• Gather 2024 tax returns (yes, the FAFSA uses prior-prior year data)

• Know your assets and income

• Create an Federal Student Aid ID for both student and parent: https://studentaid.gov/fsa-id/create-account/launch

• Understand how your financial decisions today (like asset transfers or retirement contributions) could impact aid eligibility
  
  

Hot tip: Many schools award aid on a first-come, first-served basis. Filing early could mean thousands of dollars in your favor.

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Why You Shouldn’t “Just See What Happens”

We’re planners! We cannot work around the “Just See What Happens” approach. Or a popular one amongst our client demographic, “We make too much money to qualify for anything.” 

When it comes to college planning, we have to start somewhere. Getting financially organized is step one. Then, completing the FAFSA application, regardless of financial status, is step two!

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Here’s what financial planning for college really looks like:

• Understanding your EFC or SAI (Expected Family Contribution / Student Aid Index)

• Strategizing income and assets in the years leading up to the application
  

• Identifying which schools offer need-based vs. merit-based aid
  
  
• Deciding who is borrowing—and how much they should responsibly borrow
  
  
• Planning how college funding impacts your retirement, taxes, and lifestyle
  
  

This isn’t just about affording year one. It’s about mapping out a plan that covers four (or more) years, across multiple kids, without blowing up your long-term financial goals.

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The Real Cost of College Is Often Hidden

Colleges publish their “cost of attendance,” but the real number you pay could be wildly different. Every family’s financial aid package looks different based on a complex web of:

• Income & assets (both parent and student)
  
  
• Number of children in college at once
  
  
• Institutional aid formulas
  
  
• State residency
  
  
• FAFSA vs. CSS Profile schools
  
  

Hot Tip: Don’t set foot on a college campus without first understanding the financial reality of attending that school.

We’ve seen it too many times: A family flies across the country to tour the “dream school.” The student falls in love, applies, gets accepted—and the celebration begins. Then comes the financial aid package… and suddenly, reality hits. The numbers don’t add up, and no one’s quite sure how it’s going to be paid for.

It’s like touring a house that’s wildly out of your price range—exciting in the moment, but ultimately frustrating. Don’t put yourself in that position. Know what’s financially feasible before the emotions kick in.

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There’s No Better Time than the Present

If you have a rising senior in high school, now is exactly the right moment to dig into the financial side of the college journey if you haven’t already. Here’s how we recommend breaking it down:

1. Run a Net Price Calculator

Most colleges offer this on their website. It gives you a personalized estimate based on your income and assets—not just the sticker price.

2. Get Organized

Collect tax documents, bank statements, and account balances. FAFSA season moves quickly, and being organized now pays off later.

3. Talk to Your Kid About Money

Have the real conversation about what you can afford, what you’re willing to contribute, and what loans might mean for their future. Normalize talking about money—this is a major adulting moment.

4. Work with a Financial Planner (Like Us!)

We specialize in helping families integrate college planning into their broader financial life. That means looking at how college costs interact with cash flow, savings, taxes, and retirement.

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What If You’ve Already Started Saving?

Look at you! Now it’s time to get strategic.

• Should you use 529 plan funds now or later?
  
  • NOTE: your distributions much match expenses in that year, this is different from how an Health Savings Account (HSA) works).
    
    
• Should the student have assets in their name or yours? 
  
  • NOTE: Student owned assets count more heavily against financial aid than parent owned.
    
    
• How do distributions from my savings, brokerage, or retirement accounts impact aid?
  
  • What happens in 2025 impacts the 2027-2028 FAFSA application.
    
    

These are the questions that move you from generic planning to a tailored strategy—and they can make a five-figure difference.

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What If You Haven’t Saved Much?

It’s okay. College funding isn’t all-or-nothing—it’s a puzzle. And like any puzzle, it’s solvable with the right pieces:

• Aid (grants, scholarships)
  
  
• Student Loans (federal and private)
  
  
• Work-study or student income
  
  
• Parent contributions (cash flow, home equity, etc.)
  
  

A financial plan can help you blend those pieces in a way that keeps college realistic without derailing your future.

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Final Thoughts From the Fyooz Team

You’ve spent years helping your child grow into the adult they’re about to become. College is a launchpad, but not a reason to send your finances into chaos.

So yes, celebrate the college app season. Cheer on your student as they hit “submit.” But don’t forget to open your own laptop, take a look at your financials, and make a plan.

College Applications open August 1st. The FAFSA opens October 1st. But your financial plan for college? That starts today.

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Want help creating your family’s college funding plan?
We work with high-earning families to build smart, flexible financial strategies that support education goals and life goals. Let’s talk.

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Fyooz Financial Planning is a fee-only, fiduciary financial planner based in Minneapolis, MN and Portland, OR, dedicated to helping couples achieve their financial goals. Whether you're planning for retirement, managing investments, or looking for tax-efficient strategies, our experienced team provides personalized guidance.

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Disclaimer: This article is for informational purposes only and is not a recommendation of Fyooz Financial Planning, Natalie Slagle CFP®, or Daniel Slagle CFP®. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. Therefore, it should not be assumed that future performance of any specific security, investment product or investment strategy referenced in the article, either directly or indirectly, will be profitable or equal to the corresponding indicated performance level(s). No portion of the article shall be construed as a solicitation to buy or sell any specific security or investment product or to engage in any particular investment or financial planning strategy. Any reference to a market index is included for illustrative purposes only, as it is not possible to directly invest in an index. Indices are unmanaged, hypothetical vehicles that serve as market indicators and do not account for the deduction of management fees or transaction costs generally associated with investable products, which otherwise have the effect of reducing the performance of an actual investment portfolio.